Exchange Rates and Foreign Exchange

What happens to international value of the U.S. dollar when income

The U.S. dollar appreciates because there is higher demand for U.S. financial assets due to higher interest rates.

What happens to international value of the U.S. dollar when interest rates in the US decrease compared to other countries? Explain.

The U.S. dollar depreciates because there is lower demand for U.S. financial assets due to lower interest rates.

What happens to net exports based on the changing value of the dollar? Explain.-Contractionary Monetary Policy

When the dollar appreciates, exports decrease because they are now more expensive for foreigners to buy and imports increase causing net exports to decrease.

What happens to net exports based on the changing value of the dollar? Explain.-Expansionary Fiscal Policy

When the dollar appreciates, exports decrease because they are now more expensive for foreigners to buy and imports increase causing net exports to decrease.

What happens to net exports based on the changing value of the dollar? Explain.-Expansionary Monetary Policy

When the dollar depreciates, exports increase because they are less expensive for foreigners to buy and imports decrease causing net exports to increase.

What happens to net exports based on the changing value of the dollar? Explain.-Contractionary Fiscal Policy

When the dollar depreciates, exports increase because they are now cheaper for foreigners to buy and imports decrease causing net exports to increase.